The SEC recently posted a notice on its website stemming from its resolution of a major enforcement case against Safeguard Metals LLC and its owner, Jeffrey Ikahn. The resolution included over $54 million in monetary relief—and now, with the Notice of Covered Action publicly posted, any whistleblowers who contributed to the case may be eligible for a financial award. This case is a powerful reminder of the role whistleblowers can play in protecting vulnerable investors.
The case was particularly egregious insofar as it related to a longtime fraud perpetrated against hundreds of retirees and near-retirees. Between 2017 and 2021, Safeguard Metals and Ikahn used scare tactics to convince people to roll their retirement investments into self-directed IRAs from which they bought gold and silver coins. The sales pitch was built on fear and lies. Sales agents falsely claimed that a new law allowed brokerage firms to freeze retirement accounts during market downturns and that another financial crash was imminent.
The fraud didn’t stop at scare tactics. Safeguard misrepresented its size and credibility, falsely claiming to manage $11 billion in assets from offices in London, New York, and Beverly Hills. In reality, the company operated out of a small office in a neighborhood north of Los Angeles. Investors were also misled about the costs of their purchases. While Safeguard’s documents claimed markups of 4% to 33%, the actual average markup on silver coins was a staggering 64%, with some exceeding 100%. These inflated prices drained retirement savings while enriching the fraudsters.
All told, more than 450 investors were duped into spending roughly $67 million on coins. Safeguard pocketed approximately $25.5 million through undisclosed markups—some exceeding 100% of the coins’ value. In October 2023, a federal court entered final judgments ordering over $35 million in disgorgement and prejudgment interest, along with $18 million in civil penalties.
This case is a powerful reminder of the potential value of the SEC Whistleblower Program. The program offers eligible whistleblowers 10–30% of monies collected in enforcement actions with more than $1 million in sanctions. Crucially, whistleblower payments come from a separate fund established by Congress—not from the money returned to harmed investors. That means victims can be made as whole as possible, while whistleblowers are still rewarded. The program also ensures strict confidentiality, and whistleblowers can even remain anonymous if they submit tips through an attorney.
If you know of misconduct like this, now is the time to speak up. Outten & Golden LLP represents whistleblowers nationwide and can guide you through the SEC reporting process confidentially and safely. The sooner you act, the sooner justice—and protection—can follow.
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